The General Assembly will convene a special session today, July 31, 2017, to vote on an over-due budget proposal. Lawmakers failed to pass a budget during this year’s regular session and are one month past the deadline for a new two-year budget.

Senator’s will vote to approve a labor deal made between Gov. Dannel Malloy and the employee unions to fund the state’s pension system. The House already approved the deal.

The Senate is evenly split among Democrats and Republicans, so a party line vote would require Lt. Gov. Nancy Wyman, a Democrat, to break the tie.

On July 28, Rep. David E. Price introduced a 252-page bill which would reform campaign finance laws, amend the current federal lobbying laws, and address integrity and transparency problems in the Executive Branch.

House Resolution 3537, We the People Act of 2017, is a comprehensive attempt to address issues such as federal lobbying, campaign finance, redistricting imbalances, and voter eligibility in order to focus on “major structural problems facing our democracy,” according to Price’s press release.

The law would change lobbying registration requirements and no longer exempt an individual who spends less than 20 percent of his or her time serving as a lobbyist for a particular client if he or she meets the other thresholds for registration. In addition, the legislation would require U.S. presidents to divest assets with potential conflicts of interest, require states to allow eligible individuals to register to vote on the same day of a federal election, and replace the Federal Election Commission with a new enforcement agency.

In the bill, other pending legislation currently in Congress dealing with ethics and transparency are referenced and incorporated. The bill also provides suggested solutions to be used in state and local legislative reform efforts.

Campaign Finance

“Roots, Bark and a Burger: Tennessee Sen. Bill Ketron goes to China” by Joel Ebert for The Tennessean

California: Watchdog Panel’s Support for Lifting Some Donation Limits Is Likely Boost to State Senator Facing Recall by Patrick McGreevy for Los Angeles Times

New Mexico: Rio Grande Foundation Sues Over Santa Fe Campaign Disclosure Rule by T.S. Last for Albuquerque Journal

Pennsylvania: Lawyers for Brady, Rival Rebut Claims of Illegal Campaign Payoff by Jeremy Roebuck, Chris Brennan, and Tricia Nadolny for Philadelphia Inquirer

Elections

“Voter by Voter, GOP Super PAC Tries to Separate the Party from Trump” by David Weigel for Washington Post

Ethics

Steve Bannon Has a Shadow Press Office. It May Violate Federal Law. By Christina Wilkie for Center for Public Integrity

Florida: “New Opa-locka Boss Says He Wasn’t a Witness in Kickback Case. Records Say Otherwise.” by Jay Weaver for Miami Herald

Florida: City Officials Could Be Reimbursed for Legal Fees in FBI Probe by Jeff Burlew for Tallahassee Democrat

Illinois: Judge Denies Windfall to Teachers Union Lobbyist Who Was Substitute for a Day by Ray Long for Chicago Tribune

New York: Firing of Official Who Says He Resisted de Blasio Is Under Review by William Neuman and William Rashbaum for New York Times

Pennsylvania: Firms to Pay $9M to Feds to Resolve LCB Payola Case by Matt Miller for PennLive.com

Legislative Issues

Republicans Worry That White House Disarray Is Undermining Trump by Alexander Burns and Michael Shear for New York Times

Lobbying

“Lawmakers Push to Toughen Foreign Lobbying Rules” by Megan Wilson for The Hill

“Anaheim Considers ‘Sunshine Ordinance’ and Restrictions on Lobbyists” by Thy Vo for Voice of OC

On July 27, a bill was introduced into the U.S. House of Representatives to prevent the firing of a director of the U.S. Office of Government Ethics (OGE) without cause.

House Resolution 3462, The Office of Government Ethics Independence Act, would amend federal law by clarifying that the director of the OGE may only be removed for the neglect of duty or instances of wrongdoing. It would also require the president to provide Congress with 30 days advanced notice of his or her intent to fire the director and to inform Congress as to the reasons for the action taken.

On July 19, Walter Shaub Jr. resigned as director from the OGE. Shaub, in his position as the director, had repeatedly questioned various possible conflicts of interests of President Trump and of members of the president’s White House staff. The current acting director of the OGE is David Apol, who was selected by President Trump to replace Shaub until a permanent director is announced and subsequently confirmed by the U.S. Senate.

Keeping you informed on all the government and ethics news you can use in this weeks video digest!

The Texas Legislature convened a special legislative session July 18, 2017. Property tax was a topic Gov. Greg Abbott immediately put on the agenda for the session.

House Bill 4 and Senate Bill 1 both, among other things, require a special election be called if any municipality plans to increase property taxes on land and buildings by more than 4 or 5 percent. Senate Bill 1 was passed by the Senate this week.

City and county leaders have stated such automatic election requirements would limit their budget for basic services and force them to hold costly elections.

The special session can run for up to 30 days.

National:

Lobbyist Gift-Giving at Issue in More States
Governing – Scott Rodd (Stateline) | Published: 7/21/2017

The laws that govern gift-giving from lobbyists to public officials vary widely from state to state. In states with relatively lenient laws, watchdogs and some elected officials have been working to impose tougher restrictions. They argue gifts from lobbyists may corrupt elected officials’ decision-making and cause them to stray from the best interests of their constituents. But critics have met resistance from lawmakers who say lobbyists offer informed perspectives on key issues, and these exchanges often happen over meals or sporting events that lobbyists pay for. A federal judge recently ruled a Kentucky law banning gifts from lobbyists to legislators violates lobbyists’ First Amendment rights.

Local Governments Keep Using This Software – But It Might Be a Back Door for Russia
Washington Post – Jack Gillum and Aaron Davis | Published: 7/23/2017

Many local and state government agencies say they are using a Russian brand of security software despite the federal government’s instructions to its own agencies not to buy the software over concerns about cyberespionage. The General Services Administration recently removed Moscow-based Kaspersky Lab from its list of approved vendors. In doing so, the agency’s statement suggested a vulnerability exists in Kaspersky that could give the Russian government backdoor access to the systems it protects, though they offered no explanation or evidence of it. Kaspersky has strongly denied coordinating with the Russian government and has offered to cooperate with federal investigators.

Federal:

New Ethics Chief Has Fought to Roll Back Restrictions
New York Times – Eric Lipton | Published: 7/26/2017

Former colleagues of David Apol, who was named the new director of the Office of Government Ethics (OGE), praised his intelligence and his experience as a government ethics lawyer at a half-dozen different federal agencies over three decades. But tension has been building during two stints that Apol served at the OGE, his former colleagues said. Former OGE employees said they wondered if at times Apol had gone too far in questioning agency standards. Apol acknowledged he had frequently raised questions about how the OGE interprets ethics laws that govern the activity of 2.7 million federal employees in more than 130 executive agencies, including the White House.

From the States and Municipalities:

Arizona: Arizona Legislators Attend Conference with Help from Corporations That Lobby Them at Home
Arizona Republic – Yvonne Wingett Sanchez | Published: 7/23/2017

More than a third of the Republicans in the Arizona Legislature gathered in Denver to absorb conservative ideas and mingle with lobbyists at a conference where corporate donors picked up much of the tab. Arizona is always well-represented at the annual gathering of the American Legislative Exchange Council, an organization best-known for producing ready-to-introduce legislation crafted with input from corporate America. Helping to foot the bill were some of the very companies and lobbyists who work the halls of the Legislature to advance their own agendas.

Illinois: Ex-Ald. Singer Among 6 Fined for Illegally Lobbying Emanuel Via Email
Chicago Tribune – Hal Dardick | Published: 7/21/2017

A former city council member and an Internet pioneer turned venture capitalist were penalized for illegally lobbying Chicago Mayor Rahm Emanuel through his personal email account. The Board of Ethics levied a fine of $25,000 on former Ald. William Singer. The panel imposed a $2,000 fine on Marc Andreesen, the inventor of the Netscape Internet browser. Those were among the latest group of individuals the ethics panel said had violated city law and been fined for attempting to influence Emanuel or other officials through emailed contacts. The new sanctions raise the total to eight of those fined for improper lobbying in connection with the emails.

Kentucky: Complaints Over Gov. Matt Bevin’s Anchorage Mansion Unanimously Dismissed by Ethics Panel
Louisville Courier-Journal – Tom Loftus | Published: 7/21/2017

A state ethics panel said even if Kentucky Gov. Matt Bevin got a $1 million discount on a mansion bought from a political donor and appointee, he did not violate the law. The ruling comes after two complaints were filed against Bevin over his purchase of a house and 10 acres of land from Neil Ramsey, who Bevin appointed to the Kentucky Retirement Systems board of trustees. The complaints alleged Bevin accepted what amounted to an improper gift in buying the mansion in March.

Nevada: 20 Years of Term Limits: How the faces of Nevada’s Legislature have changed
Las Vegas Sun – Yvonne Gonzalez | Published: 7/20/2017

Term limits have helped make the Nevada Legislature more diverse in the almost 20 years since they were implemented, though the higher turnover has come with some costs. Experts say term limits have brought in new faces but reduced institutional knowledge as veteran lawmakers are pushed out. They say lobbyists have more power and the Legislative Counsel Bureau is even more vital both in educating new lawmakers and keeping the legislative process moving.

New Mexico: Secretary of State Unveils Changes to Proposed Disclosure Rules
Albuquerque Journal – Dan Boyd | Published: 7/25/2017

New Mexico Secretary of State Maggie Toulouse Oliver released revisions to proposed rules aimed at so-called dark money groups that can spend unlimited amounts to influence elections and ballot measures when acting independently. Several conservative groups with a statewide and national presence say Toulouse Oliver is overstepping her authority by requiring that independent expenditure groups disclose their contributors. Toulouse Oliver says New Mexicans have a right to know who is paying for ads that attempt to influence their vote. The revisions would raise the spending threshold to $2,500 before independent expenditure groups must reveal their donors.

New York: De Blasio Ally Didn’t Register as Lobbyist Despite Big Push for a Donor
New York Times – William Neuman | Published: 7/24/2017

Neal Kwatra, a political consultant and lobbyist with ties to New York City Mayor Bill de Blasio, ended up working so closely with top City Hall officials on behalf of a restaurant owner, Harendra Singh, that a city commissioner complained officials were giving Kwatra confidential information during delicate negotiations to settle a lawsuit with Singh. Yet none of Kwatra’s efforts on behalf of Singh in 2015 were registered as lobbying work, even though Kwatra and his company, Metropolitan Public Strategies, have registered as lobbyists for other clients, including United for Affordable NYC, a short-lived nonprofit group created by de Blasio to support his housing policies.

New York: Watchdogs Say Cuomo Is Skirting Campaign Finance Rules
New York Times – Brian Rosenthal | Published: 7/26/2017

Watchdogs say New York Gov. Andrew Cuomo is again skirting campaign finance rules by using a secretive nonprofit to advance his agenda. The rules limit donations to political campaigns and require disclosure, and politicians are not supposed to get around them by using organizations that can accept unlimited secret contributions. But New Yorkers United Together is the third nonprofit formed by allies of Cuomo’s to emerge and support his policies.

North Carolina: NC Elections and Ethics Oversight Is Frozen Between Old and New, with Local Votes Approaching
Raleigh News and Observer – Anne Blythe | Published: 7/21/2017

The North Carolina Supreme Court said a revamped state elections board that also oversees ethics and lobbying controversies can stay in limbo for now, a holding pattern that could last months. The justices said Gov. Roy Cooper is not required to appoint members of the new state elections and ethics enforcement board created by Republican legislators. That means the board would be unable to make decisions or settle disputes until after the Supreme Court hears oral arguments in the case on August 28.

Pennsylvania: Aide Pleads Guilty, Says Brady Campaign Paid Primary Challenger to Quit
Philadelphia Inquirer – Jeremy Roebuck and Chris Brennan | Published: 7/25/2017

A former aide to a political challenger of U.S. Rep. Robert Brady admitted she helped funnel the Brady’s cash to her former boss in exchange for his withdrawal from an election. Carolyn Cavaness, a pastor who was an aide to Philadelphia Judge Jimmie Moore during his 2012 candidacy in the Democratic primary, told officials she set up at Moore’s direction a shell company that would be used to accept $90,000 from Brady. In turn, she said, Moore would drop out of the race and use the cash to pay off his campaign debt. The money was routed through two political consultants who falsified invoices intended to justify the payments, officials said. Cavaness pleaded guilty to filing false statements to hide the transactions.

Pennsylvania: Allentown Mayor Ed Pawlowski Put City Hall Up for Sale to Highest Bidders, Prosecutor Says
Allentown Morning Call – Emily Opilo, Peter Hall, and Matt Assad | Published: 7/27/2017

The mayor of Allentown and the former mayor of Reading were indicted on federal corruption charges for engaging in an alleged series of “pay-to-play” schemes in which the politicians shook down businesses and individuals for campaign contributions in exchange for political favors. Allentown Mayor Edwin Pawlowski and former Reading Mayor Vaughn Spencer have been charged with multiple counts of bribery and fraud. In two indictments, federal prosecutors spelled out charges against five people in the parallel corruption cases in Allentown and Reading.

South Carolina: FBI Investigating South Carolina Statehouse Corruption, Could Expand Scope of State Probe
Charleston Post and Courier – Andy Shain, Glenn Smith, and Schuyler Kropf | Published: 7/22/2017

Two former South Carolina Ports Authority officials say they have talked with FBI agents about an ongoing political corruption investigation. Former authority Chairperson Pat McKinney said the agents focused on the work the consulting firm run by Richard Quinn Sr. did for the agency. His son, state Rep. Rick Quinn Jr., was suspended from his seat after being charged with misconduct in office. The probe already has rattled the capital, where the Quinn family has been a force for decades. The addition of the FBI to the case only ratchets up the stakes, putting the federal government’s resources at the disposal of investigators and potentially allowing them to expand the scope of the inquiry to other targets.

Virginia: Transgender Woman Challenges Virginia Bathroom Bill Sponsor
Roanoke Times – 2017 Sarah Rankin (Associated Press) | Published: 7/25/2017

Democrat Danica Roem is challenging Republican Bob Marshall for his seat in the Virginia House of Delegates. With such stark differences between the candidates, the race is expected to draw in big money and is seen by some as a referendum on rights for gay and transgender people. Roem would be the first openly transgender candidate to win and serve in a state Legislature, according to the Victory Fund, a PAC that supports her and calls Marshall “the most anti-LGBTQ member of the Virginia state legislature.” Marshall has sponsored some of the most socially conservative legislation in the past 25 years, including a measure this year that would have restricted the bathrooms that transgender people can use.

State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

Lobbying

Maryland: “Petroleum Industry Leads Maryland Lobbying Spenders – But Lost” by Michael Dresser for Baltimore Sun

Campaign Finance

Canada: “Ban on Big Money in Politics Could Be Delayed by Lobby Reform: BC NDP” by Mike Hager for Globe and Mail

New Mexico: “Secretary of State Unveils Changes to Proposed Disclosure Rules” by Dan Boyd for Albuquerque Journal

New York: “Watchdogs Say Cuomo Is Skirting Campaign Finance Rules” by Brian Rosenthal for New York Times

Ethics

“New Ethics Chief Has Fought to Roll Back Restrictions” by Eric Lipton for New York Times

California: “Ethics Commission: Oakland Councilmember McElhaney violated conflict-of-interest rules, accepted illegal gifts” by Darwin BondGraham for East Bay Express

Louisiana: “Report: Official in New Orleans IG’s office steered contracts to friends, altered reports for ‘personal agenda’” by Jeff Adelson for New Orleans Advocate

Pennsylvania: “Allentown Mayor Ed Pawlowski Put City Hall Up for Sale to Highest Bidders, Prosecutor Says” by Emily Opilo and Peter Hall for Allentown Morning Call

Pennsylvania: “Aide Pleads Guilty, Says Brady Campaign Paid Primary Challenger to Quit” by Jeremy Roebuck and Chris Brennan for Philadelphia Inquirer

Gov. Jerry Brown announced special election dates for California’s Assembly District 51.

A primary election will be held on October 3, 2017, and the general election is set for December 5, 2017.

The seat became vacant when Democrat Jimmy Gomez resigned upon his election to the U.S. House of Representatives.

The Anaheim City Council is set to consider an ethics ordinance at its meeting on July 25.

The ordinance proposes a two-year revolving door restriction and lobbyist registration and quarterly reporting requirements. The ordinance also requires certain city officials to retain all email communications for 90 days, rather than the current 37 days.

Councilman Jose Moreno promised to introduce the ordinance upon his inauguration to the city council in response to concerns with the lack of transparency dealing with city tax subsidies for luxury hotel developers.

After the first comment period ended on July 19, Sec. of State Maggie Toulouse Oliver has released a revised campaign finance rule draft.

One revision would require a person who makes independent expenditures of $3,000 or less in a non-statewide race to report identifying information on each person who contributes more than $200 in the previous 12 months, while statewide races would require spending of $7,500 or less for the same level of disclosure.

Interested individuals may submit official comments on the revised draft until 5:00 p.m. on August 29, 2017.

The final rule is expected to be completed this fall with an October 2017 effective date. The revised rule is available on the secretary of state website.

Lobbying

New York: “De Blasio Ally Didn’t Register as Lobbyist Despite Big Push for a Donor” by William Neuman for New York Times

Ethics

“Manafort Agrees to Turn Over Notes That Could Provide New Details on Trump Tower Meeting with Russian Lawyer” by Rosalind Helderman and Karoun Demirjian for Washington Post

“Five Sentenced to Days in Jail for Supreme Court Disruption Over Campaign Finance” by Spencer Hsu for Washington Post

Elections

“Federal Judge Allows Trump Commission’s Nationwide Voter Data Request to Go Forward” by Spencer Hsu for Washington Post

California: “A New Suit Says Lawmakers Broke the Law When They Changed California’s Recall Election Rules” by John Myers for Los Angeles Times

Virginia: “Transgender Woman Challenges Virginia Bathroom Bill Sponsor” by 2017 Sarah Rankin (Associated Press) for Roanoke Times

Legislative Issues

“In Congress, New Fears and New Protections in Wake of Baseball Team Shooting” by Ed O’Keefe for Washington Post

Procurement

Illinois: “New Details Emerge of Former DCFS Head’s Controversial Contracts, Hires” by David Jackson and Gary Marx for Chicago Tribune

The North Carolina Supreme Court ruled that pending Gov. Roy Cooper’s legal challenge of Senate Bill 68, which combines state elections and ethics boards, the new merged board can remain vacant.

The boards merged in June into the state Board of Elections and Ethics Enforcement after a three-judge panel ruled against the governor, but Cooper has yet to appoint any board members.

With local elections coming up in the fall, some county elections boards are finding themselves in tough positions awaiting appointments to fill seats left open due to resignations because the state board appoints county board members.

The case is scheduled for arguments at the Supreme Court on August 28.

Lobbying

“Cash Surges to Lobby Firms in Trump Era” by Megan Wilson for The Hill

Arizona: “Arizona Legislators Attend Conference with Help from Corporations That Lobby Them at Home” by Yvonne Wingett Sanchez for Arizona Republic

Campaign Finance

Michigan: “GOP Consultant’s Purchase of Michigan Talk Radio Stations Sparks Concerns” by Paul Egan for Detroit Free Press

Ethics

California: “Is Riverside’s Ethics Code Broken? Seven Hearings, $57,000 Later, Some Say Yes” by Alicia Robinson for Press-Enterprise

Florida: “Miami Lobbyist’s Business Made $1 Million Profit on State Anti-Hazing Contract” by Arek Sarkissian for Naples News

South Carolina: “FBI Investigating South Carolina Statehouse Corruption, Could Expand Scope of State Probe” by Andy Shain, Glenn Smith, and Schuyler Kropf for Charleston Post and Courier

Elections

“Local Governments Keep Using This Software – But It Might Be a Back Door for Russia” by Jack Gillum and Aaron Davis for Washington Post

“Ivanka Trump Received at Least $12.6 Million Since 2016, Disclosure Shows” by Rachel Abrams and Jesse Drucker for New York Times

Legislative Issues

Nevada: “20 Years of Term Limits: How the faces of Nevada’s Legislature have changed” by Yvonne Gonzalez for Las Vegas Sun